The study ranked 142 economies across the world on their innovation capacity and efficiency. Switzerland topped the list, and it was followed by Sweden, United Kingdom, Netherlands and the US.

"India ranked 66th in the GII ... It ranked poor in the areas such as political stability (123rd), Ease of starting business (128th), School life expectancy (109th), Pupil-teacher ratio (108th), Knowledge absorption (122th)," CII said in a statement.

However, India ranked first in the Central and South Asian region followed by Kazakhstan and Sri Lanka, and it stood 11th in overall Innovation efficiency ratio, it said.

It said that a group of middle and low-income countries, including China and India are outpacing their peers, but haven't broken into the top of the GII 2013.